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HAMMERSON PLC - Dividend currency conversion announcement - Dividend no. 137

Release Date: 20/08/2019 11:00
Code(s): HMN     PDF:  
 
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Dividend currency conversion announcement - Dividend no. 137

Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE share code: HMSO     JSE share code: HMN
ISIN: GB0004065016
(‘Hammerson’ or ‘the Company’)

Dividend Currency Conversion Announcement - Dividend No. 137
20 August 2019

On 29 July 2019 the board of directors of the Company declared an interim dividend of 11.1 pence
per share (“Dividend”) for the six month period ended 30 June 2019. The Dividend is payable on
Monday, 7 October 2019 to shareholders on the register at the close of business on Friday, 30 August
2019.

The Dividend will be subject to a 20% UK withholding tax unless exemptions apply and will be treated
as a Property Income Distribution (“PID”). The Dividend Reinvestment Plan (“DRIP”) will be available
for those shareholders who wish to receive the Dividend in the form of shares. The Dividend should be
regarded as a “foreign dividend” for South African (“SA”) income and SA dividend tax purposes.

Shareholders receiving the Dividend in cash
The Company confirms that the South African Rand exchange rate for the Dividend will be
ZAR 18.7116 to GBP 1. The Dividend is payable in South African Rand to SA Shareholders.
Shareholders who do not elect the DRIP will be paid as follows:

PID                                                                    UK       SA Shareholders
                                                              Shareholders
                                                                                     (ZAR cents)
                                                              (GBP pence)

Gross amount of PID                                                   11.10           207.69876

Less 20% UK withholding tax/20% SA dividends tax                       2.22            41.53975

Net PID dividend payable*                                              8.88           166.15901

Less 5% SA Shareholders excess reclaim                                 n/a             10.38494

Net PID dividend payable**                                             n/a            155.77407


*Net position after SA Shareholders have claimed back 5% from HMRC under the double tax
agreement between the United Kingdom and South Africa.

** Before SA shareholders have claimed back 5% from HMRC under the double tax agreement
between the United Kingdom and South Africa.


Cash PIDs
A 20% UK withholding tax will be deducted from cash PIDs. The Company will account to Her
Majesty’s Revenue & Customs (“HMRC”) in sterling for the total UK withholding tax deducted.
SA dividends tax, at the rate of 20%, will apply to cash PIDs payable by the Company unless the
beneficial owner of the Dividend is exempt from SA dividends tax (e.g. if it is a South African resident
company). Under the double tax agreement between the UK and South Africa (“the DTA”), the
maximum tax payable in the UK is 15%. South African resident shareholders are therefore entitled to
claim the excess of 5% from HMRC. As SA Shareholders are entitled to reclaim this excess from HMRC,
the maximum rebate allowable in respect of the UK withholding tax against the SA dividends tax is
15%, which means that the Company will have to withhold a further 5% from the Dividend in South
Africa to bring the total dividends tax to 20%. In summary, therefore, 20% will be withheld in the UK, a
further 5% will be withheld in South Africa (where appropriate), but South African resident
shareholders will be entitled to claim back 5% from HMRC, which will bring the overall total to 20%.

Shareholders electing for the DRIP
SA Shareholders electing for the DRIP should note that, in respect of fractional entitlements that may
arise, all allocations of shares will be rounded down to the nearest whole number, and any residual
amounts that are not used to reinvest in shares (as a result of rounding down) will be paid out to
these SA Shareholders in cash.

It is the Company’s understanding that the residual cash paid to SA Shareholders who have made
DRIP elections would already have been taxed prior to the calculation of the number of shares and
any residual cash owing to such SA Shareholders. Accordingly, no further tax should be payable on
the cash paid to SA Shareholders as a result of any fractional entitlements.

The above information and the guidelines on the taxation of dividends are provided as a general
guide based on the Company’s understanding of the law and practice currently in place. Any
shareholder who is in any doubt as to their tax position should seek independent professional advice.

Registered Office           UK Registrars                SA Transfer Secretaries

Kings Place                 Link Asset Services          Computershare           Investor
90 York Way                 The Registry                 Services Proprietary Limited
London                      34 Beckenham Road            (Registration
N1 9GE                      Beckenham                    number 2004/003647/07)
United Kingdom              Kent                         1st Floor, Rosebank Towers,
                            BR3 4TU                      15 Biermann             Avenue,
                            United Kingdom               Rosebank, 2196
                                                         South Africa
                                                         (PO Box 61051, Marshalltown,
                                                         2107, South Africa)

For further information contact:

Michael Pasmore
Assistant Company Secretary
Tel: +44 (0)20 7887 1000

For further information contact:


Hammerson has its primary listing on the London Stock Exchange and a secondary inward listing on
the Johannesburg Stock Exchange.
Sponsor:
Investec Bank Limited

Date: 20/08/2019 11:00:00
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